An iperceptions & HSMAI Special Report Online Satisfaction and Experience in the Hospitality Industry Q1 2012 Additional reports available at the iperceptions Resource Center http://www.iperceptions.com/resource-center/ 4999 Ste-Catherine Street West, Suite 500, Montreal, Quebec, H3Z 1T3 T. 877.796.3600 F. 866.484.2600 info@iperceptions.com www.iperceptions.com 1760 Old Meadow Road, Suite 500, McLean, Virginia 22012 T. 703.506.3280 F. 703.506.3266 info@hsmai.org www.hsmai.org
Table of Contents Table of Contents... 2 About the Report... 3 Executive Summary... 3 Overall Satisfaction... 4 Task Completion... 5 Type of Traveler... 6 Hotel Category Overall Satisfaction and Task Completion... 6 Type of Traveler by Hotel Category... 7 Loyalty Program Membership by Type of Traveler... 7 Visit Frequency by Type of Traveler... 7 Purpose of Visit... 8 Purpose of Visit by Type of Traveler... 9 Task Completion by Purpose of Visit by Type of Traveler... 9 Task Completion Barriers for Bookers... 10 Path to Site... 11 Path to Site by Visit Frequency... 12 iperceptions Perceptual Framework... 13 Attribute Questions... 13 Attribute Ratings... 14 Attribute Ratings by Loyalty Program Membership... 15 Key Drivers of Online Satisfaction for Bookers... 16 About iperceptions and HSMAI... 17 2
About the Report The following report is based on immediate post-experience feedback from 163 iperceptions webvalidator and 4Q Suite surveys deployed on hospitality websites around the world. The data represents aggregated information obtained from over 92,000 visitors between January 1 and March 31, 2012. Executive Summary Setting the Stage The majority of hospitality website visitors are leisure travelers (60%), however it is the business traveler group that typically has more success when visiting a hospitality website. A consistently higher prominence of repeat visitors and loyalty program members within the business cohort helps explain this, as they become more familiar with a website and develop a higher level of brand involvement. Noteworthy for Q1 2012 is that despite fewer loyalty program members and repeat visitors, overall experience and task completion improved significantly among business travelers. Perhaps this is a result of websites optimizing content for the business traveler in an effort to better meet their needs. Many brands have recognized in recent years that business and leisure travelers look for different types of information, and have addressed these needs by providing content specific to their context of their trip. Overall Experience The Overall Experience score for the hospitality industry improved significantly in Q1 2012, along with all Attribute ratings. In particular, evaluations of price/value (Bottom line) and top of mind brand consideration (Starting point) gained the most ground, particularly among business travelers. Importantly, however, is that the Bottom line Attribute remains the lowest ranked element of the online experience, indicating that visitors continue to expect hospitality providers to offer more for less, and thus shop around for the best deal they can find. Regression analysis shows that website Responsiveness is the lowest rated and most influential Key Driver of the visitor s overall online experience. This means that hospitality providers must prioritize ensuring that the website is functioning optimally, that room inventory is up to date and that all features are working smoothly in order to maximize website satisfaction and boost chances of conversion. Purpose of Visit & Task Completion Approximately 40% of website visitors are Lookers, while 25% are Bookers. Business travelers are more likely to be Bookers than their leisure counterparts, where the latter is more focused on finding hotel information and comparing rates as part of the evaluation process. Overall task completion decreased slightly to 70% in Q1 2012 mainly due to lower success rates when trying to find hotel information or complete other tasks, such as checking loyalty points balances. Generally, business travelers are better able to complete their tasks than leisure travelers, mainly because business travelers are more frequent 3
site visitors, thus facilitating their online experience. Of note is that task completion among business Bookers increased significantly in Q1 2012, from 31% to 33%. Price continues to be the leading reason for failed task completion among Bookers, which is not surprising given that the Bottom Line Attribute is rated as one of the lowest parts of the overall online experience. Visitors complained that rates were too expensive and that they could be obtained for cheaper elsewhere. Ten percent indicated that they encountered problems while booking, such as having to re-enter information and availability and rates changing during their session. Further, 10% claimed that they could not find any availability for when they wanted to travel, where some voiced that they were able to successfully book after calling the establishment directly. And another 10% cited information issues as a reason for not booking either they could not find the information they were seeking, or that they needed an additional level of granularity to the information already provided. Technical issues decreased slightly this quarter, down to 3% from 4% in Q4 2011. Loyalty Program Membership Over the past two years, loyalty program membership has grown steadily quarter to quarter, mostly a function of brands investing in initiatives to foster conversion and promote brand growth in light of the economic downturn during that time. Q1 2012, however, marks the first quarter since 2010 where membership actually decreased significantly versus the previous quarter. Perhaps this is reflective of fewer marketing efforts being placed into loyalty program growth. Or, it could be a symptom of loyalty program overload, where consumers are members of so many loyalty programs that they have simply reached their saturation point. Path to Site Usage of a search engine was the leading path to a brand s website in Q1 2012, up significantly from Q4 2011. This finding is to be expected, however, given that there was a significant rise in 1 st time visitors to hospitality websites (29% in Q1 2012 vs 27% in Q4 2011, respectively). One in four types in the URL, and 15% use a bookmark. As might be expected, overall experience and task completion are highest among visitors who use a bookmark to reach a website, mainly because they tend to be more frequent visitors and project a stronger brand affinity. Those who use a search engine, on the other hand, post some of the lowest rates of overall experience and task completion. Much of this is linked to the fact that many search engine users are 1 st time website visitors, but this underscores the point that hospitality sites must be easy to navigate and intuitive to use in order to maximize the experience of the novice visitor and encourage them to return and adopt the site long term. The Road Ahead With satisfaction metrics improving among business travelers, the key will be to maintain this trend by continuously striving to meet their needs. This means delivering the most relevant information in the most convenient way. Mobile device ownership among business travelers is almost universal, and according to PhoCusWright, 77% of frequent business travelers have used their mobile devices to find local services (e.g. lodging) and nearby attractions. Further, Google reports that searches for hotel information on a mobile device have increased by 3,000 percent since 2009. Therefore, hospitality brands should invest in their mobile sites as an essential platform to reach their customers by providing easily accessible information and enabling quick and intuitive booking, as this is clearly the channel of the future. 4
Overall Satisfaction Q1 2012 73.0 Q4 2011 72.0 50 55 60 65 70 75 80 Task Completion Q1 2012 70.0% Q4 2011 71.0% 50% 55% 60% 65% 70% 75% 80% 5
Type of Traveler Leisure Travelers 60% Business Travelers 29% Other 10% 0% 10% 20% 30% 40% 50% 60% 70% Percent Share Overall Satisfaction Task Completion Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Leisure Traveler 60% 59% 73 73 70% 71% Business Traveler 29% 30% 74 72 79% 77% Other 10% 10% 72 72 68% 67% Hotel Category Overall Satisfaction and Task Completion Overall Satisfaction Task Completion Q1 2012 Q4 2011 Q1 2012 Q4 2011 Luxury 73 72 72 70% Midscale 74 74 73 74% Economy 73 71 70 69% Extended Stay 75 78 77 80% 6
Type of Traveler by Hotel Category Luxury Midscale Economy Extended Stay Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Leisure Travelers 56% 55% 65% 65% 67% 70% 52% 46% Business Travelers 35% 36% 22% 23% 13% 11% 37% 41% Other 9% 10% 13% 12% 21% 19% 11% 13% Loyalty Program Membership by Type of Traveler Overall 79% Leisure Travelers 76% Business Travelers 89% 65% 70% 75% 80% 85% 90% Overall Leisure Travelers Business Travelers Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Membership 79% 81% 76% 78% 89% 90% Visit Frequency by Type of Traveler Overall Leisure Travelers Business Travelers Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 First-time Visitor 29% 27% 31% 30% 21% 19% Repeat Visitor 71% 73% 69% 70% 79% 81% 7
Purpose of Visit Make Reservation 25% Compare Rates 21% Find Hotel Info 20% View / Cancel Res 7% Other 27% 0% 5% 10% 15% 20% 25% 30% Percent Share Overall Satisfaction Task Completion Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Make Reservation 25% 26% 73 72 68% 68% Compare Rates 21% 20% 72 72 70% 69% Find Hotel Info 20% 20% 74 74 68% 70% View / Cancel Res 7% 7% 76 72 79% 76% Other 27% 27% 72 72 73% 75% 8
Purpose of Visit by Type of Traveler Leisure Travelers Business Travelers Q1 2012 Q4 2011 Q1 2012 Q4 2011 Make Reservation 29% 29% 33% 31% Compare Rates 28% 24% 14% 12% Find Hotel Info 18% 18% 9% 8% View / Cancel Res 5% 5% 8% 9% Other 21% 23% 36% 39% Task Completion by Purpose of Visit by Type of Traveler Leisure Travelers Business Travelers Q1 2012 Q4 2011 Q1 2012 Q4 2011 Make Reservation 70% 69% 78% 76% Compare Rates 68% 69% 74% 77% Find Hotel Info 67% 67% 76% 74% View / Cancel Res 79% 76% 82% 75% Other 75% 77% 81% 79% 9
Task Completion Barriers for Bookers* Price 33% Still Looking/unsure 13% Booking Problem Room Availability Ran out of time 10% 10% 9% Could not find what looking for 6% Need More Info Technical Issue 4% 3% Other 10% 0% 5% 10% 15% 20% 25% 30% 35% Percent Share Q1 2012 Q4 2011 Price 33% 30% Still Looking/unsure 13% 14% Booking Problem 10% 12% Room Availability 10% 11% Ran out of time 9% 9% Could not find what looking for 6% 8% Need More Info 4% 5% Technical Issue 3% 4% Other 10% 7% *Bookers: Purpose of Visit = Make a Reservation 10
Path to Site Search Engine 30% Typed in URL 25% Bookmark / Fav 15% Clicked on Ad Other Site Link E-mail Link Link from Friend Social Net Link 3% 3% 2% 1% 0% Other 21% 0% 5% 10% 15% 20% 25% 30% 35% Percent Share Overall Satisfaction Task Completion Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Search Engine 30% 27% 69 70 60% 61% Typed in URL 25% 28% 72 73 62% 65% Bookmark / Fav 15% 17% 75 76 67% 66% Clicked on Ad 3% 3% 71 69 61% 58% Other Site Link 3% 1% 69 69 65% 68% Email Link 2% 1% 73 72 67% 68% Link from Friend 1% -- 74 -- 71% -- Social Net Link -- -- -- -- -- -- Other 21% 22% 72 73 64% 62% 11
Path to Site by Visit Frequency First-Time Visitors Repeat Visitors Q1 2012 Q4 2011 Q1 2012 Q4 2011 Search Engine 33% 35% 28% 23% Typed in URL 20% 22% 28% 32% Bookmark / Fav 5% 5% 19% 21% Clicked on Ad 4% 4% 2% 2% Other Site Link 1% -- 2% 1% Email Link 2% 1% 1% 1% Link from Friend -- -- 1% -- Social Net Link -- -- -- -- Other 35% 32% 19% 19% 12
iperceptions Perceptual Framework Attribute Questions Dimension Attribute Question Adoption Content Interactivity Motivation Navigation Starting Point Return Breadth Relevancy Contacts Responsive Bottom Line Convenience Discovery Ease of Use...is one of the first sites you use when you plan a trip or event?...encourages you to return?...covers the range of information you need?...has content that is relevant to the purpose of your visit?...enables you to identify and contact the right people?...is truly interested in responding to your needs?...can save you money on room rates?...is the most convenient way to choose your hotel accommodations?...enables you to find what you re looking for?...is easy for you to navigate? 13
Attribute Ratings 7.6 7.5 7.53 7.4 7.3 7.44 7.44 7.42 7.39 7.37 7.35 7.2 7.1 7.25 7.21 7.14 7.0 6.9 Overall Leisure Travelers Business Travelers Q1 2012 Q4 2011 Q1 2012 Q4 2011 Q1 2012 Q4 2011 Relevancy 7.53 7.48 7.54 7.52 7.59 7.47 Return 7.44 7.40 7.46 7.45 7.45 7.35 Ease of Use 7.44 7.39 7.46 7.45 7.43 7.31 Breadth 7.42 7.38 7.43 7.41 7.49 7.38 Discovery 7.39 7.35 7.40 7.39 7.45 7.33 Convenience 7.37 7.31 7.38 7.35 7.39 7.29 Starting Point 7.35 7.25 7.38 7.29 7.37 7.26 Responsive 7.25 7.20 7.27 7.25 7.25 7.13 Contacts 7.21 7.14 7.24 7.21 7.20 7.05 Bottom Line 7.14 7.02 7.13 7.03 7.19 7.02 14
Attribute Ratings by Loyalty Program Membership Members Non-members Q1 2012 Q4 2011 Q1 2012 Q4 2011 Relevancy 7.67 7.60 7.07 7.05 Return 7.59 7.53 6.92 6.93 Ease of Use 7.53 7.46 7.09 7.08 Breadth 7.57 7.51 6.98 6.97 Discovery 7.54 7.47 6.94 6.93 Convenience 7.51 7.44 6.92 6.93 Starting Point 7.58 7.49 6.66 6.66 Responsive 7.37 7.30 6.89 6.87 Contacts 7.34 7.23 6.86 6.85 Bottom Line 7.36 7.26 6.71 6.67 15
Key Drivers of Online Satisfaction for Bookers* The following Attributes together best predict overall site satisfaction for in-market visitors. Dimension Attribute Question Interactivity Responsive...is truly interested in responding to your needs? Navigation Discovery...enables you to find what you re looking for? Navigation Ease of Use...is easy for you to navigate? Content Breadth...covers the range of information you need? *Bookers: Purpose of Visit = Make a Reservation 16
About iperceptions and HSMAI 4999 Ste-Catherine Street West, Suite 500, Montreal, Quebec, H3Z 1T3 T. 877.796.3600 F. 866.484.2600 info@iperceptions.com www.iperceptions.com iperceptions is the leader in online Voice of Customer analytics, using advanced intercept surveys to gather feedback from representative samples of real visitors. Its webvalidator Continuous Listening solution and 4Q Suite solution turn millions of data points into easy-to-understand strategic and tactical decision support, while its Web Analytics Solution Profiler (WASP) provides superior web analytics quality assurance. iperceptions clients include well-known brands such as InterContinental Hotels, Fairmont, Best Western, Choice Hotels International and Wyndham Vacations. For more information, please visit www.iperceptions.com. 1760 Old Meadow Road, Suite 500, McLean, Virginia 22012 T. 703.506.3280 F. 703.506.3266 info@hsmai.org www.hsmai.org The Hospitality Sales and Marketing Association International (HSMAI) is committed to growing business for hotels and their partners, and is the industry s leading advocate for intelligent, sustainable hotel revenue growth. The association provides hotel professionals & their partners with tools, insights, and expertise to fuel sales, inspire marketing, and optimize revenue through programs such as HSMAI s MEET, Adrian Awards, and Revenue Optimization Conference. HSMAI is an individual membership organization comprising more than 7,000 members worldwide, with 40 chapters in the Americas Region. Connect with HSMAI at www.hsmai.org, www.facebook.com/hsmai, www.twitter.com/hsmai and www.youtube.com/hsmai1. 17